In order to drive in USA, every driver must have at least a third party car insurance. Also called “civil liability”, it covers the insured in case of damage caused to a third party. This third party insurance is often chosen for its limited cost compared to a comprehensive insurance. When choosing a car insurance policy, the financial aspect cannot be the only criterion: the driver’s profile, the type of vehicle and its use must also be taken into account.
Third party liability: the mandatory minimum
Insurance is mandatory for “all natural persons”.whose civil liability may be incurred because of damage suffered by third parties resulting from attacks on persons and property in the realization of which a vehicle is involved, must, in order to circulate this one, be covered by an insurance guaranteeing this liability…”.
The law thus sets third party insurance as the minimum requirement for driving. In the event of a claim, the third party insured benefits from a civil liability cover that takes care of the damages caused to third parties.
When should you choose third party insurance?
Third party insurance is the cheapest coverage. It represents the most economical way for a driver to drive in compliance with the law.
The owner of a car that is a few years old may want to opt for this type of coverage, which only covers third party liability. Insurance companies base their reimbursements for comprehensive insurance on the value of the vehicle. However, the value of a vehicle declines every year and after 5 years of existence, the price of comprehensive coverage is often disproportionate to the value of the car.
Third party insurance can also be an interesting option for drivers with a bad record or who have had their car cancelled and whose insurance premium has increased considerably. The choice of a simple civil liability contract allows them to limit the cost of their car insurance.
Third party insurance: limited guarantees
Third party insurance does not only have advantages. A third-party policyholder who is responsible for an accident will not be compensated for the physical or bodily damage he or she has suffered. Their coverage will be limited to compensation for damages caused to others through their fault.
It is therefore a basic protection that forces the driver to assume all the expenses concerning him when his responsibility is engaged.
Likewise, the driver will not be entitled to any compensation in case of vandalism, fire or theft.
However, drivers with an old car who do not want to take out a comprehensive insurance policy can find an intermediate solution with an improved third party insurance policy, offering additional guarantees including glass breakage and legal assistance.